OECD WORKSHOP ON INCLUSIVE GROWTH 3 APRIL 2013 OECD CONFERENCE CENTRE PROCEEDINGS 0 TOGETHER WE STAND OECD Inclusive Growth Initiative Caitlin, we need here to insert the quotes that were displayed at the conference. The one of the SG is too long as compared to the one of Luis, better to put the two previous ones We now know what doesn’t work. And we have a pretty clear idea of what can be done in order to fix it. And more and more of what we could have or should have done to make the problem less acute – less long lasting. The question of inclusiveness, inequality, opportunities, looking after the most vulnerable is something that we did not put enough attention on. That is part of the Aqui. The OECD has an almost magic ability to bring fact to issues and to fight for better policies for better lives. In some ways it is the world’s largest social justice organisation. – Angel Gurria, OECD Secretary-General ANGEL GURRIA, SECRETARY- GENERAL, OECD “If we are serious about creating lasting prosperity and security, we need a smarter and more sustainable approach to growth—one that taps the potential of everyone to contribute to society and build a better future”. Luis Ubiñas, President, Ford Foundation LUIS UBINAS, PRESIDENT, FORD FOUNDATION 1 CONTENTS AGENDA .............................................................................................................. 5 SPEECHES .......................................................................................................... 9 DRAFT PROCEEDINGS .............................................................................. 15 BACKGROUND .............................................................................................. 15 DEFINING AND MEASURING INCLUSIVE GROWTH ..................... 16 TOWARDS A ROADMAP FOR INCLUSIVE GROWTH POLICIES 20 TOWARDS A ROADMAP FOR INCLUSIVE GROWTH POLICIES 24 IMPLEMENTING CHANGE AND ENSURING BUY-IN ..................... 26 GOING FORWARD TOGETHER............................................................... 27 SESSION NOTES ........................................................................................... 35 INTRODUCTION ........................................................................................... 35 CONTEXT: WHY INCLUSIVE GROWTH? ............................................ 37 SESSION 1. DEFINING AND MEASURING INCLUSIVE GROWTH50 SESSION 2: TOWARDS A ROADMAP FOR INCLUSIVE GROWTH POLICIES 55 SESSION 3. IMPLEMENTING CHANGE AND ENSURING BUY-IN62 OPINION NOTES........................................................................................... 70 ENCOURAGING RATIONAL ALTRUISM TO ACHIEVE INCLUSIVE PRODUCTION 70 INCLUSIVE GROWTH ................................................................................. 72 INVERTING THE TELESCOPE ................................................................. 74 PAVING THE WAY FOR AN INCLUSIVE FUTURE ........................... 76 A 21ST CENTURY PROJECT: DEFINING AND MEASURING INCLUSIVE GROWTH FOR SHARED PROSPERITY .................................................................................................. 78 REFORM FATIGUE RISKS DELAYING LONG TERM CHALLENGES FOR INCLUSIVE GROWTH AND THE AGEING POPULATION .......................................................... 80 INCLUSION AMID PROSPERITY: THE IMPORTANCE OF PLACE81 GROWTH JUST A STATE OF MIND, SUSTAINED INCLUSIVENESS IS ITS CORE 83 INCLUSIVE GROWTH NEEDS A NEW MONITORING AND REPORTING 85 HOW TO PIN DOWN THE ELUSIVE SIGNIFICANCE OF INCLUSIVE GROWTH 87 INEQUALITY IS POISION .......................................................................... 89 KNOWLEDGE PILLARS FOR AN INCLUSIVE GROWTH POLICY ROADMAP 91 GREEN GROWTH IS “PASSÉ”- LET’S CREATE A JUST, FAIR AND SUSTAINABLE ECONOMY WITH CLEAN ENERGY FOR ALL ........................................................... 93 HOW THE MILLENNIUM DEVELOPMENT GOALS COULD (FINALLY) ADDRESS INEQUALITY 95 THE FRONTLINE TO ADDRESS LABOUR ISSUES: THE ROLE OF LOCAL AUTHORITIES 97 HOW SLUM DWELLERS HALT CITY BULLDOZERS ...................... 99 TOWARDS INCLUSIVE INNOVATION-DRIVEN GROWTH: A CALL FOR MORE SKILLS UPGRADING AND COLLABORATION ............................................... 101 THE CASE FOR INCLUSIVE CAPITALISM ....................................... 103 WE ARE WHAT WE MEASURE ........................................................... 105 2 FISCAL POLICIES IN SUPPORT OF INCLUSIVE GROWTH (AND SHARED PROSPERITY) .......................................................................................................................... 107 HAVING A JOB MAKES A DIFFERENCE: PUBLIC EMPLOYMENT PROGRAMMES, INCLUSION, AND GROWTH ............................................................................................ 109 HOW CAN DEMOCRATIC-DECENTRALIZED INDONESIA REGAIN ITS INCLUSIVE GROWTH? .......................................................................................................................... 111 INCLUSIVE GROWTH: AN EMPIRICAL NEXUS BETWEEN GROWTH AND SOCIAL POLICIES .......................................................................................................................... 113 FROM CONSUMPTION-BASED GROWTH TO INCLUSIVE AND SUSTAINABLE DEVELOPMENT .......................................................................................................................... 115 MEASURING A MORE EQUITABLE FUTURE ................................. 117 INCLUSIVE GROWTH AND YOUNG PEOPLE ................................. 119 ECONOMICS: PART OF PROBLEM, OR PART OF THE SOLUTION? 121 AN ALTERNATIVE WAY TO ENSURE INCLUSIVE AND SUSTAINABLE DEVELOPMENT IN EUROPE ........................................................................................................ 123 SOCIAL MOBILITY AS KEY DRIVING FORCE FOR INCLUSIVE GROWTH 128 FOCUS ON UNDERREPRESENTED GROUPS WHILE PROMOTING ENTREPRENEURSHIP .......................................................................................................................... 130 MANAGING STREETS, MOVING TO SUSTAINABILITY ............. 132 INCLUSIVENESS THROUGH OPPORTUNITY ................................. 134 TOWARDS AN OECD INCLUSIVE GROWTH PROJECT .............. 136 INCLUSIVE CITIES TO SEIZE AN ELUSIVE GROWTH ................ 140 COOPERATIVES: GUARANTORS FOR INCLUSIVE GROWTH CONSPICUOUSLY ABSENT IN TRADE & DEVELOPMENT DISCOURSE ........................................... 142 EDUCATION, SCIENCE AND RESEARCH FOR AN AGEING SOCIETY IN A POST NUCLEAR AND POST OIL ERA............................................................................................. 144 INCLUSIVE GROWTH: PUTTING PEOPLE AND RIGHTS BACK IN THE EQUATION 145 INCLUSIVE GROWTH AND CITIES .................................................... 147 PROMOTING INCLUSIVE GROWTH THROUGH TAX REFORM149 INCLUSIVE GROWTH .............................................................................. 151 EQUITABLE SKILL DEVELOPMENT OPPORTUNITIES & EMPLOYABILITY ACQUISITION – TWO NEEDED PILLARS TO ENSURE INCLUSIVE GROWTH AND ECONOMIC PARTICIPATION .......................................................................................................................... 153 WHO’S WHO................................................................................................ 156 LIST OF PARTICIPANTS ......................................................................... 198 3 4 AGENDA 09H00-09H30 COFFEE-REGISTRATION Participants will enter through the main OECD Headquarters, 2 rue André Pascal, Paris 75016 and present an ID to gain access to the conference centre, room CC1. Coffee and croissants will be served. 09H30-10H00 WELCOME SESSION - OPENING REMARKS Angel Gurría, Secretary-General, OECD Luis Ubiñas, President, Ford Foundation 10H00-11H30 SESSION 1 “DEFINING AND MEASURING INCLUSIVE GROWTH” Moderator: Zeinab Badawi, Presenter, World News Today, BBC Five years into the global economic crisis, the world needs growth, but not any kind of growth—growth that distributes benefits more equitably across society. This type of growth – inclusive growth – is in demand, but despite extensive use by researchers, practitioners and international organisations the concept remains vague and tends to mean different things to different people. A broadly accepted concept that identifies and encompasses the main elements that result in inclusive growth is needed to drive progress and pave an inclusive way forward. ELEMENTS FOR DISCUSSION How should inclusive growth be defined? What are the key non-monetary dimensions that need to be taken into account when defining the concept? Is it possible to measure inclusive growth? If so, how? Does it make sense to define a composite indicator of inclusive growth? If yes, how should it be constructed? What are the specificities and particular conditions of developing countries that affect the definition and measurement of inclusive growth? 11H30-11H45 COFFEE BREAK 11H45-13H00 SESSION 2 “TOWARDS A ROADMAP FOR INCLUSIVE GROWTH POLICIES” Moderator: Zeinab Badawi, Presenter, World News Today, BBC The drivers of inclusive growth and an understanding of how they interact can be identified once the concept and measurement tools have been defined. This is critical to develop feasible policies in areas that impact both growth and inclusiveness: education, innovation and entrepreneurship, urban development, tax, social and labour market. Part of this work is to uncover the trade-offs among different policy options, as well as their likely complementarities and side-effects. Discussions in this session will provide guidance for the work on